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NTU Management Review Vol. 34 No. 1 Apr. 2024

to provide a more comprehensive and holistic view of environmental disclosure. Using
a more comprehensive and longitudinal dataset, this study presents empirical results
that shed light on the overall environmental disclosure practices of Taiwanese listed and
OTC companies in recent years and contributes to a better understanding of the overall

environmental disclosure status of these Taiwanese companies. Second, this study fills the
gaps in the literature on the impact of environmental disclosure on earnings information
content. Previous studies have examined the impact of environmental disclosure on firm

value (Zhu, Lu, Hong, and Yang, 2008) or equity financing costs (Liu et al., 2019). In
contrast, this study uses earnings response coefficients to measure the extent to which
investors’ perceptions of earnings quality are affected by the level of environmental
disclosure. The results show that more comprehensive disclosure of environmental
information improves investors’ perceptions of earnings quality. Finally, this study

extends research literature on the effects of managerial shareholdings on Corporate
Social Responsibility (CSR). Previous studies have examined the impact of managerial
shareholdings on the level of CSR activities or the disclosure of carbon emission

information (Budiharta and Kacaribu, 2020; Shan, Tang, and Zhang, 2021). The results
suggest that the positive relationship between environmental disclosure and investors’
perceptions of earnings quality becomes more pronounced in samples with higher
managerial ownership. This result underlines the importance of managerial ownership.

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